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Exhibition cost is biz expense, rules ITAT
May, 27th 2008
Companies can treat expenditure incurred on participating in exhibitions as business expense and claim tax benefits, the Income Tax Appellate Tribunal has said in a recent decision. Giving its ruling in a case pertaining to the Indian subsidiary of Austrian auto component maker Styler Daimler Puch, ITAT said expenditure on exhibitions is aimed to propagate business and hence cannot be disallowed for claiming tax benefits by the tax department. All the expenses were aimed to propagate the assessees business... I accordingly allow the expenses, ITAT president Vimal Gandhi said. The case pertains to participation of Austrian companys subsidiary Styler India, in Auto Expo 1998, on which the company spent about Rs 15 lakh.
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